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Affordability
Our example illustrates the annual costs associated with buying your own home.
Annual Costs
Annual costs comprise interest, repayments and ancillary costs. When added together, they should not exceed 1/3 of the gross income. Our clients, Mr. and Mrs. Bieler, both aged 34, are planning to buy their own home. Let's look at the affordability:
|
Costs |
Amount in CHF |
|---|---|
|
The purchase price/market value is |
800,000 |
|
Deposit (generally 20% of the purchase price) |
160,000 |
|
Borrowing (generally 80% of the purchase price) |
640,000 |
|
Charges |
|
|
Interest costs (assumed to be 5% / 5.75% per year) |
32,800 |
|
Repayment (second mortgage repayments generally continue until age 60) |
4,300 |
|
Maintenance (1% of the market value) |
8,000 |
|
Total costs for the property per year |
45,100 |
|
Costs for the property per month |
3,700 |
|
Please note: |
|
|
In this example, therefore, Mr. and Mrs. Bieler would need a joint gross annual income of |
135,000 |
Use the mortgage calculator to work out your own personal financing model. If you wish to obtain further advice, please contact your client advisor or call 0844 855 400.
